Easing of COVID restrictions is seen to boost global demand
Copper rises after Goldman predicts record high
US yields rise as investors await Fed meeting
By Herbert Lash
NEW YORK, Dec 8 (Reuters) – Global stocks rose and oil prices rose on Thursday on hopes that China’s easing of its anti-COVID measures will help restore global supply chains and stem inflation.
China’s policy change, announced on Wednesday, will allow its economic growth to accelerate, state media CCTV quoted Premier Li Keqiang as saying.
Wall Street rose, boosted by a rise in shares of US-listed Chinese companies, while copper climbed on expectations of increased demand from China, its biggest consumer. Goldman Sachs predicted that metal prices could reach $11,000 a ton in a year.
“The understanding that China will come back online and manufacturing will help reduce inflation and that’s a good thing. If inflation goes down, the Fed can step in and stop,” Tim Ghriskey, chief investment strategist at Inverness. Counselor in New York, said.
Hong Kong’s Hang Seng rose more than 3% and the yuan hit a near 3-month high, although economists warned that any economic improvement could take time to emerge and the easing of restrictions could be temporary as infections increase. reduce
MSCI’s gauge of stocks around the world rose 0.63%, while on Wall Street, the Dow Jones Industrial Average rose 0.52%, the S&P 500 gained 0.69% and the Nasdaq Composite added 1.04%. .
Crude oil prices rose somewhat on hopes that the main Canada-US pipeline will resume operations after the spill and heavy oil supplies will return to the market at a time when the global economic slowdown has reduced demand for energy.
U.S. crude oil was last up 0.5% at $72.37 a barrel and Brent was at $77.15, down 0.03% on the day.
The dollar fell against the euro as investors weighed the possibility that the Federal Reserve’s tight monetary policy could trigger a recession. Euro increased by 0.38 percent and reached 1.0545 dollars.
Treasury yields were higher as investors awaited next week’s reports on inflation and the Fed’s policy-setting meeting. Global debt yields, which tend to move inversely to their prices, have fallen in recent weeks on expectations that slower growth or a recession will slow rate hikes.
The US consumer price index on December 13 could be important in setting long-term expectations for the Fed’s monetary policy.
The 10-year Treasury yield rose 7.9 basis points to 3.487%, while Germany’s 10-year yield rose to 1.835%.
(Reporting by Herbert Lash, additional reporting by Harry Robertson; Editing by Arun Koyyur, Angus MacSwan and Andrew Heavens)